In the middle of the ongoing debate of how to best quantify and support discounts for lack of marketability (DLOM), a crucial point is often overlooked. The reduction in value caused by the DLOM represents a market-made concession to compensate an investor for the increased risks of a less-marketable and illiquid concern. The application of a DLOM decreases the value of an interest to increase the rate of return to an investor. The purpose of this presentation will highlight how this fundamental concept can be effectively put to use to objectively determine a DLOM using three published studies that quantify the differences between public and private investments.

Learning Objectives

After completing this webinar, attendees will be able to:

- Recognize how to use empirical evidence to calculate, quantify, and defend a DLOM- Interpret the speaker's experience with the IRS and Tax Courts using the techniques presented, and how appraisers can best prepare their DLOM determinations- Evaluate the quantitative and qualitative strengths of three historical studies on the difference between rates of return for public and private investments- Identify where professional thinking currently stands on marketability discounts and what larger trends this may highlight- Recognize how this methodology can help support your appraisal even if you use another method of determining DLOMs

Who Should Attend

Financial professionals

Presenter(s)

Bruce Johnson, ASAMr. Bruce Johnson is a partner with Munroe, Park & Johnson. He holds a degree in Engineering and a MBA from Texas A&M University. Mr. Johnson has been published on a wide range of valuation topics in several periodicals including the Texas Bar Journal, Business Valuation Update, Business Valuation Review, CCH BV Update, Texas Lawyer, and Strategic Planning. He is also a contributing author for PPC’s Guide to Business Valuation and a co-author of the Comprehensive Guide for the Valuation of Family Limited Partnerships. He was the expert witness for the taxpayer in two land mark tax cases—Estate of Elsie J. Church and Estate of Emily Klauss.

Mr. Johnson is an Accredited Senior Appraiser of the American Society of Appraisers (ASA) and elected member of the ASA’s Business Valuation Committee. He has spoken at seminars, conferences, and webinars for the American Institute of Certified Public Accountants® (AICPA®), ASA, National Association of Certified Valuators and Analysts™ (NACVA®), BVR, and Partnership Profiles.